(1)(2)(3)(4)(5)QdQdPriceQsQs5040$1070806050960708060850609070740501008063040Refer to the above table. In relation to column (3), a change from column (5) to column (4) would indicate a(n):
A. decrease in demand.
B. increase in demand.
C. increase in supply.
D. decrease in supply.
Answer: D
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Explain why a monopoly that knows the demand curve of identical consumers can set a two-part tariff with the lump sum tariff equal to the total amount of potential consumer surplus
What will be an ideal response?
If price is between AVC and ATC, the best and most practical thing for a perfectly competitive firm to do is
A) raise prices. B) lower prices to gain revenue from extra volume. C) shut down immediately, but not liquidate the business. D) shut down immediately and liquidate the business. E) continue operating, but plan to go out of business.
Interest rate parity can be summarized by which of the following equilibrium conditions?
a. The foreign interest rate must equal the domestic interest rate plus the expected inflation. b. The foreign interest rate must equal the domestic interest rate. c. The foreign interest rate must equal the expected change in the exchange rate. d. The domestic interest rate must equal the foreign interest rate plus the expected change in exchange rate. e. The domestic interest rate must equal the foreign interest rate minus any expected inflation.
Michelle Vlasminski, CEO of Michelle Enterprises, has five projects in hand and is considering which, if any, to undertake. Their expected returns are: project A = 12 percent, project B = 7 percent, project C = 10 percent, project D = 9 percent, and project E = 8 percent. If the interest rate is 8.5 percent, which, if any, investment projects will she accept?
a. only project A b. projects A and C c. projects A, C and D d. projects A, C, D and E e. projects A, B, C, D and E